United States v. City of Hayward, Cal.

ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT AND DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

INTRODUCTION

The United States brought suit against the City of Hayward (“Hayward”) for a violation of the Fair Housing Act (“FHA”), 42 U.S.C. § 3617 , arising from Hayward’s enforcement of its rent control statute. Both parties have brought motions for summary judgment. For the reasons set forth below, the United States’ motion for summary judgment is GRANTED and Hayward’s motion for summary judgment is DENIED.

BACKGROUND

S.G. Borello & Sons Corporation (“Borel-lo”) owns and operates Eden Roc Mobile Home Park in Hayward, California. Prior to 1989, Eden Roc was operated as an “adult-only” park, and residents were required to be at least eighteen years old.

In 1988, Congress enacted the Fair Housing Amendments Act to prohibit discrimination against families with minor children. This amendment included an exemption for housing for older persons. On June 28, 1989, Borello entered into its first lease with a family with minor children. Hayward contends that Borello knew this single lease would not affect the park’s eligibility for a senior exemption under the FHA and that…